The micro-investing app loved by millennials is widening its target market after closing its latest fundraise.

US-based micro investments app Stash has announced a $37.5m raise in Series D funding, led by Union Square Ventures. Existing investors Breyer Capital, Coatue Management, Entree Capital, as well as fintech familiars Goodwater Capital and Valar Ventures, also joined in on the round.

Stash is currently the fastest growing consumer investing app in the US, serving over 1.7m users and with approximately 40,000 new clients joining weekly. The platform also has over 5m subscribers on its various social media channels, which have become increasingly popular among younger clients for their educational finance and investment content.

In Stash, users can access over 40 curated ETFs to build personalised portfolios that reflect their investing interests as well as savings goals, starting from as little as $5. Approximately 86 per cent of its clients continue to be first-time investors, with the average age of its users falling around 29.

“The lack of financial security is a rapidly escalating issue in the U.S. Stash’s goal since day one has been to help the masses of underserved Americans jump start their journey towards building a healthy and prosperous future,” said Brandon Krieg, Co-founder and CEO, Stash.

“Through intelligent products and an emphasis on education, we’ve been able to meaningfully improve the financial lives of nearly two million clients. We’re proud of what our customers have accomplished, but we’re even more excited for what’s ahead.”

The platform has also announced it will be rolling out its new Custodial Accounts this week, which allows Stash clients to open new investing accounts for kids to give them “financial head starts” for education, retirement, or general life expenditures. The account can then be transferred into the child's name upon turning either 18 or 21, for them to start their own investing journey.

Stash will also be releasing two more new features this week. Smart-Save will automatically moves a portion of a client’s money into a Stash savings account when its algorithm determines a person has spare cash according to their spending habits. Moreover, Stash Coach will provide dynamic recommendations to help clients maintain a balanced portfolio whilst improving their financial health.

“Through customer focus and a data-driven mindset, Stash has been able to to create a powerful consumer brand, with unprecedented growth, on its journey to fix the inequities plaguing financial opportunity across the U.S. We’re excited to join them on this mission to shake up the status quo,” said Rebecca Kaden, Partner at Union Square Ventures.

Stash aims to use the additional funding to continue the development of its products and brand, and plans to release a new banking service later this year. The app launched support for retirement accounts in 2017 with Stash Retire, allowing users to automate investment into both Roth and Traditional IRAs starting at $15.

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